FHFA Considers Bitcoin USD as Mortgage Asset, Boosting Price 4%

The Federal Housing Finance Agency (FHFA) in the U.S. is reportedly considering the possibility of making Bitcoin USD a verified asset on which mortgages can be given. This potential move suggests that Bitcoin could soon be recognized alongside traditional assets such as shares and cash when applying for home loans in the United States. Analysts are closely monitoring this development amid growing institutional interest in digital assets.

The FHFA, which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, is currently studying how cryptocurrency holdings could be factored into mortgage applications. If this policy is adopted, Bitcoin USD holders would be able to list their crypto assets during the mortgage underwriting process. This change would make it easier for digitally native investors to access credit. FHFA Director William J. Pulte has confirmed that the agency is reviewing how to incorporate crypto into the asset evaluation framework.

Traditionally, mortgage underwriters evaluate borrowers based on three main categories: credit, capacity, and collateral. Assets used to determine a borrower's financial position have included cash reserves, equity, and retirement funds. Digital assets have not been included in these evaluations due to their volatility and the lack of regulatory guidance. The FHFA’s ongoing review could introduce Bitcoin USD as a “fourth C,” potentially altering the mortgage qualification landscape in the U.S.

Analysts are evaluating how a potential change to FHFA policy could affect Bitcoin price patterns. The immediate Bitcoin price formation, as noted by Ted Pillows, demonstrated a Wyckoff accumulation phase that began on June 22. This model suggests accumulation above the $106,220 level, with institutional investors potentially accumulating in anticipation of a breakout. If the Bitcoin price can maintain its current support and stay above $125,209, the next target is $135,000. This chart pattern is supported by broader macro liquidity shifts, such as the growing global M2 money supply. High levels of liquidity have previously correlated with bullish actions in Bitcoin price.

If the FHFA development becomes official policy, it could further promote institutional capital, providing an additional boost to the current Bitcoin USD upward structure. The bullish Bitcoin news has also seen the best crypto price breach the $105,000 mark, up by 4% within the last 24 hours. The chart shows a strong recovery from the $101.5K level, followed by a steady upward trajectory, signaling buyer confidence.

For many U.S. borrowers, crypto holdings are currently sidelined in traditional financial assessments. Individuals with significant digital asset portfolios are often required to convert their holdings into fiat and “season” the funds in a bank account before they can be considered in mortgage applications. The exploration by the FHFA could mark the beginning of a shift toward a more inclusive view of wealth. If Bitcoin USD is officially confirmed as an eligible asset, the mortgage procedure could become available to a new layer of investors, particularly those who have amassed fortunes in crypto markets. This could also stimulate the use of fintech lenders and banks to embrace some form of underwriting model that aligns with changing asset trends.

Amid the rising usage of Bitcoin among American states, Texas is establishing itself as a pioneer with regard to a prospective strategic Bitcoin reserve. With the recent legal clarity provided by HB 4488 and stablecoin regulation, this movement is a sign of digital assets integration.